A condensed income statement for Electric Arts and a partially completed vertical analysis follow. Required: 1. Complete
Question:
A condensed income statement for Electric Arts and a partially completed vertical analysis follow.
Required:
1. Complete the vertical analysis by computing each line item from (a) through (d) as a percentage of Net Revenues. Round to the nearest whole percentage.
2. Does Electric Arts? 2017 Cost of Goods Sold, as a percentage of Net Revenues, represent better or worse performance as compared to 2016?
Transcribed Image Text:
ELECTRIC ARTS, INC. Income Statement (summarized) For the Year Ended March 31 (in millions) 2017 2016 $ 3,654 $ 4,212 100% Net Revenues 100% 50 Cost of Goods Sold 1,866 (a) 2,127 1,359 Research and Development Expense 1,229 (b) 32 Sales and Marketing Expense (c) 730 691 16 General and Administrative Expense 515 14 862 21 Income (Loss) from Operations (686) (19) (827) (19) Other Revenue (Expenses) (20) (1) (28) (1) Income (Loss) before Income Tax (706) (20) (855) (20) Income Tax Recovery (Expense) 29 (233) (6) Net Income (Loss) $ (677) (d)% $(1,088) (26)%
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Related Book For
Fundamentals of Financial Accounting
ISBN: 978-1259269868
5th Canadian edition
Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh
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